Salesforce financial results center: FY2020
Salesforce has capped off its year in the sun by posting Record Fourth Quarter AND Full Year Fiscal 2020 Results.
Salesforce’s stock price tends to fluctuate regularly, due to the frequency of large acquisitions and changes in personnel, but investors will be heavily encouraged by the company’s latest financial results.
Salesforce’s record-breaking year sees a Fourth-quarter revenue of $4.85 Billion, up 35% Year-Over-Year. FY20 Revenue in total was $17.1 Billion, up 29% year over year, 29% in Constant Currency.
The CRM giant has raised FY21 Revenue Guidance from $21.0 Billion to $21.1 Billion, with Q1 FY21 Revenue Guidance rising from $4.875 Billion to $4.885 Billion.
Salesforce Chairman and CEO Marc Benioff was understandably delighted to be posting such positive results ahead of what will no doubt be another ground-breaking year for the tech powerhouse.
“Our Q4 and FY20 results were phenomenal. We are delighted to raise our revenue guidance for FY21 by $200 million to $21.1 billion at the high end of the range, while expanding our operating margin.
“Nothing is more important to us than the trust and customer success we have with each one of our customers. Salesforce’s Customer 360 platform uniquely brings companies and customers together.”
The success of Salesforce paints a bright future for those working with the technology. As a specialist Salesforce recruiter, Mason Frank looks forward to growth in the Salesforce partner and customer ecosystem, as more and more organizations across the globe embrace the world’s number one CRM technology.
Director, Mason Frank International
“Every day we connect hundreds of Salesforce professionals with businesses utilizing the company’s products,” said Andy Mason, Director of Mason Frank.
“It’s encouraging to see Salesforce’s continuing growth and dominance in the CRM market space. To be aligned with a company that continues to scale at pace, while investing in R&D and innovating is extremely exciting, especially as Salesforce is still yet to fully realize its potential in the technology sector.”
Salesforce delivered the following results for its fiscal fourth quarter:
Total fourth quarter revenue was $4.85 billion, an increase of 35% year-over-year, and 34% in constant currency. Subscription and support revenues for the quarter were $4.56 billion, an increase of 35% year-over-year. Professional services and other revenues for the quarter were $288 million, an increase of 26% year-over-year.
Total Fiscal 2020 revenue was $17.1 billion, up 29% year-over-year, and 29% in constant currency. Subscription and support revenues for the year were $16.0 billion, an increase of 29% year-over-year. Professional services and other revenues for the year were $1.1 billion, an increase of 21% year-over-year.
Earnings per Share:
Fourth quarter GAAP loss per share was $(0.28), and non-GAAP diluted earnings per share was $0.66. Mark-to-market accounting of the company’s strategic investments, required by ASU 2016-01, benefited GAAP loss per share by $0.03 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.03 based on a non-GAAP tax rate of 22.5%.
Fiscal 2020 GAAP earnings per share was $0.15, and non-GAAP diluted earnings per share was $2.99. Mark-to-market accounting of the company’s strategic investments, required by ASU 2016-01, benefited GAAP earnings per share by $0.38 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.39 based on a non-GAAP tax rate of 22.5%.
Cash generated from operations for the fourth quarter was $1.63 billion, an increase of 23% year-over-year. Total cash, cash equivalents and marketable securities ended the fourth quarter at $7.95 billion. Cash generated from operations for Fiscal 2020 was $4.33 billion, an increase of 27% year-over-year.
Remaining Performance Obligation:
Remaining performance obligation ended the fourth quarter at approximately $30.8 billion, an increase of 20% year-over-year. Current remaining performance obligation ended the fourth quarter at approximately $15.0 billion, an increase of 26% year-over-year, 27% in constant currency.
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